Government to allow diversion of 17 LT of sugar for ethanol production
The flexibility will be given to sugar mills for using both sugarcane juice and B-heavy within an overall cap of 17 lakh tonnes of diversion of sugar for making ethanol in the ongoing 2023-24 supply year.
In view of the problems faced by the sugar industry due to the decision to ban making ethanol from sugarcane juice, the government is contemplating giving some concessions. An order for permission to use 17 lakh tonnes of sugar for ethanol production may be issued soon. In the last season, 38 LT of sugar was diverted for ethanol.
Last week, the central government banned the use of sugarcane juice for ethanol production given the decline in sugar production. However, a fresh order may soon be issued by the government allowing the diversion of 17 lakh tones of sugar for ethanol production.
Sugar mills will be allowed to use both sugarcane juice and B-heavy within the limit of 17 lakh tonnes of sugar to make ethanol in the current season 2023-24. A meeting of the Committee of Ministers was held on this issue on Friday. The ratio in which ethanol production from sugarcane juice and B-heavy molasses will be allowed is being considered.
Meanwhile, the food ministry has issued fresh a directive to all sugar mills and distilleries. The ministry said the oil marketing companies (OMCs) will issue a "revised allocation" of "sugarcane juice and B heavy molasses-based ethanol" for the 2023-24 supply year to "each distillery". After receiving the revised allocation, sugar mills and distilleries have been asked to supply ethanol strictly as per the revised quantity of cane juice and B-heavy molasses.
This year, the sugarcane crop in the country has been damaged due to weak monsoon and strong El Nino effect. Sugar production is estimated to decline to 323-330 lakh tonnes in the 2023-24 season (Oct-Sept), compared to 373 lakh tonnes in the last season. Drought is worrying in Maharashtra and Karnataka.
The decision on ethanol has created a stir in the sugar industry and there were protests in Maharashtra. There was a demand from the industry to withdraw this decision. The latest directive aimed to address concerns of sugar industries as many distilleries are only sugarcane-based.
